Delta Company

November 30

Balance Sheet 2013 2014

Cash $160 $300

Accounts Receivable $420 $480

Inventory $500 $730

Equipment $2,000 $2,500

Less Accumulated Depreciation $(1,000) $(1,200)

Total Assets $2,080 $2,810

Accounts payable $280 $310

Other current liabilities $300 $500

Notes payable Long Term $600 $700

Common Stock $400 $600

Retained Earnings $500 $700

Total liabilities and stockholders' equity $2,080 $2,810

Income statement

Net sales $1,550 $1,840

Cost of goods sold 920 1060

Gross margin 630 780

Expenses:

Salaries 200 250

Warehousing costs 90 120

Advertising 120 70

Taxes 45 75

Total expenses 455 515

Net income $175 $265

Calculate the following for the year 2014:

1. Current Ratio

2. Accounts Receivable Turnover

3. Inventory Turnover

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Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year		Last Year
Assets
Current assets:
Cash	$	1,280	$	1,560
Accounts receivable, net		12,300		9,100
Inventory		9,700		8,200
Prepaid expenses		1,800		2,100
Total current assets		25,080		20,960
Property and equipment:
Land		6,000		6,000
Buildings and equipment,net		19,200		19,000
Total property andequipment		25,200		25,000
Total assets	$	50,280	$	45,960
Liabilities andStockholders' Equity
Current liabilities:
Accounts payable	$	9,500	$	8,300
Accrued liabilities		600		700
Notes payable, short term		300		300
Total current liabilities		10,400		9,300
Long-term liabilities:
Bonds payable		5,000		5,000
Total liabilities		15,400		14,300
Stockholders' equity:
Common stock		800		800
Additional paid-in capital		4,200		4,200
Total paid-in capital		5,000		5,000
Retained earnings		29,880		26,660
Total stockholders' equity		34,880		31,660
Total liabilities andstockholders' equity	$	50,280	$	45,960

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year		Last Year
Sales	$	79,000	$	74,000
Cost of goods sold		52,000		48,000
Gross margin		27,000		26,000
Selling and administrativeexpenses:
Selling expenses		8,500		8,000
Administrative expenses		12,000		11,000
Total selling and administrativeexpenses		20,500		19,000
Net operating income		6,500		7,000
Interest expense		600		600
Net income before taxes		5,900		6,400
Income taxes		2,360		2,560
Net income		3,540		3,840
Dividends to commonstockholders		320		600
Net income added to retainedearnings		3,220		3,240
Beginning retained earnings		26,660		23,420
Ending retained earnings	$	29,880	$	26,660

Required:

Compute the following financial data for this year:

1. Accounts receivable turnover. (Assume that all sales are onaccount.) (Round your answer to 2 decimalplaces.)

2. Average collection period. (Use 365 days in a year.Round your intermediatecalculations and final answer to 2 decimal places.)

3. Inventory turnover. (Round your answer to 2 decimalplaces.)

4. Average sale period. (Use 365 days in a year.Round your intermediatecalculations and final answer to 2 decimal places.)

5. Operating cycle. (Round your intermediatecalculations and final answer to 2 decimal places.)

6. Total asset turnover. (Round your answer to 2 decimalplaces.)

greenfox731

*P23-3 (SCFâDirect Method)* MortonsonCompany has not yet prepared a formal statement of cash flows forthe 2014 fiscal year. Comparative balance sheets as of December 31,2013, and 2014, and a statement of income and retained earnings forthe year ended December 31, 2014, are presented below.




MORTONSON COMPANY
Statement of Income and Retained Earnings
For The Year Ended December 31, 2014
($000 Omitted)
Sales		$3,800
Expenses
Cost of goods sold	$1,200
Salaries and benefits	725
Heat, light, and power	75
Depreciation	80
Property taxes	19
Patent amortization	25
Miscellaneous expenses	10
Interest	30	2,164
Income before income taxes		1,636
Income taxes		818
Net income		818
Retained earnings - January 1, 2014		310
		1,128
Stock dividend declared and issued		600
Retained earnings - December 31, 2014		$528

MORTONSON COMPANY
Comparative Balance Sheet
December 31
($000 Omitted)
Assets	2014	2013
Current assets
Cash	$333	$100
U.S. Treasury notes (Available-for-sale)	10	50
Accounts receivable	780	500
Inventory	720	560
Total current assets	1,843	1,210
Long-term assets
Land	150	70
Buildings and equipment	910	600
Accumulated depreciation	(200)	(120)
Patents (less amortization)	105	130
Total long-term assets	965	680
Total assets	$2,808	$1,890

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$420	$330
Income taxes payable	40	30
Notes payable	320	320
Total current liabilities	780	680
Long-term notes payable - due 2016	200	200
Total liabilities	980	880
Stockholders' equity
Common stock outstanding	1,300	700
Retained earnings	528	310
Total stockholders' equity	1,828	1,010
Total liabilities and stockholders' equity	$2,808	$1,890

*Instructions:*
Prepare a statement of cash flows using the direct method.Changes in accounts receivable and in accounts payable relate tosales and cost of sales. Do not prepare a reconciliationschedule.


MORTONSON COMPANY
Statement of Cash Flows
For The Year Ended December 31, 2014
($000 omitted)
Cash flows from operating activities
Title		Amount
Title	Amount
Title	Amount
Title	Amount
Title	Amount
Title	Amount
Title	Amount
Title	Amount	Formula
Net cash provided by operating activities		Formula

Cash flows from investing activities
Title	Amount
Title	Amount
Title	Amount
Net cash used by investing activities		Formula

Increase in cash		Amount
Title		Amount
Title		Formula

(a) Sales		Amount
Title		Amount
		Formula
Add: Title		Amount
Cash receipts (collections from customers)		Formula

(b) Cost of goods sold		Amount
Add: Title		Amount
Title		Formula
Deduct: Title		Amount
Title		Formula
Deduct: Title		Amount
		Formula
Add: Title		Amount
Cash purchases (payments for merchandise)		Formula

(c) Income taxes		Amount
Title		Amount
		Formula
Add: Title		Amount
Income taxes (cash)		Formula

ultramarinetortoise74

PROBLEM 14-7 Prepare a statement of Cash Flows (L014-1, L014-2] Comparative financial statements for Weaver Company follow Weaver Company Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Assets Cash ........ 340 484 Accounts receivable ................. Inventory ........................... Prepaid expenses ..................... Total current assets .................... Property, plant, and equipment ........... Less accumulated depreciation ......... Net property, plant, and equipment ....... Long-term investments .......... Total assets ..... *******41118 8801981123382982513 $ Liabilities and Stockholders' Equity Accounts payable ... Accrued liabilities Income taxes payable ......... Total current liabilities ........ Bonds payable .................. Total liabilities ........................ Common stock ....................... Retained earnings ................... Total stockholders' equity .............. Total liabilities and stockholders' equity .... 310 700 210 107 Weaver Company Income Statement For the Year Ended December 31, 2014 $800 500 300 213 Sales ......... Cost of goods sold .................. Gross margin ........... Selling and administrative expenses ..... Net operating income ....... Nonoperating items: Gain on sale of investments ......... Loss on sale of equipment .......... Income before taxes ................. Income taxes . . . . . . . . . ... Net income ...................... During 2014, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 when purchased several years ago. A cash dividend was paid during 2014 and the company repurchased $40 of its own stock. Weaver did not retire any bonds dur- ing 2014 Required: 1. Using the indirect method, determine the net cash provided by operating activities for 2014. 2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2014.

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Homework Help 3,900,000

Accounting 580,000

	Delta Company
	November 30
Balance Sheet	2013	2014
Cash	$160	$300
Accounts Receivable	$420	$480
Inventory	$500	$730
Equipment	$2,000	$2,500
Less Accumulated Depreciation	$(1,000)	$(1,200)
Total Assets	$2,080	$2,810
Accounts payable	$280	$310
Other current liabilities	$300	$500
Notes payable Long Term	$600	$700
Common Stock	$400	$600
Retained Earnings	$500	$700
Total liabilities and stockholders' equity	$2,080	$2,810

Income statement
Net sales	$1,550	$1,840
Cost of goods sold	920	1060
Gross margin	630	780
Expenses:
Salaries	200	250
Warehousing costs	90	120
Advertising	120	70
Taxes	45	75
Total expenses	455	515
Net income	$175	$265


Calculate the following for the year 2014:
1. Current Ratio
2. Accounts Receivable Turnover
3. Inventory Turnover